07.06.2024
ECOSYSTEM
Bringing compliance to gaming: PixelPai & WhiteLabel Games
Amid the rise of digital technologies, traditional advertising methods are steadily becoming less effective. This in effect pushes marketers to seek out new and improved marketing strategies, such as gamification.
Gamification, the practice of using game elements to motivate and engage users, is becoming a powerful tool in modern marketing strategies. An impressive 93% of marketers have expressed their enthusiasm for gamification. But, why does it work so well? The answer lies in psychology.
Gamification taps into our natural sense of competition and desire for validation, driving notable improvements in user interaction and marketing outcomes. Game-based motivation can increase user engagement by up to 48%, with gamified websites extending browsing time by around 30%. This leads to higher conversion rates and more referrals. Plus, it helps gather valuable customer data. Using quizzes or challenges with lead capture forms, businesses can collect detailed insights about their audience, beyond just email addresses.
That being said, as gamification gains more traction, the importance of compliance cannot be overstated. With strict data privacy regulations like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States, businesses must handle legal and ethical considerations carefully. This means getting clear user consent before collecting data, being transparent about how the data is used, and putting robust security measures to protect user information. So, what steps can we take to ensure compliance and trust in gamification?
In light of our collaboration with WhiteLabel Games 🎮 Gamification Solutions for Businesses, a leader in advergaming, through a personal interview with Founder and CEO, Ash Rahman, we explore how we can prioritize compliance in gamification frameworks for optimal gamified experiences and results:
What initially sparked your interest in launching WhiteLabel Games and directing your attention towards advergames as a marketing tool?
“We used to create and publish casual games. Eventually, from our network of indie devs, we discovered many developers were interested in selling game IPs. We saw an interesting problem to be solved, so we pivoted to become a marketplace platform for buying and selling mobile app and game ownership. Our initial GTM strategy was based on auctioning off casual games.
However, after the release of iOS 14.5 with new data protection features, the market started declining. The majority of our demand side was mid to small studios. With this market change, most of them went out of business. We failed to find the scale for our marketplace and paused operations briefly.
At some point, an idea from my childhood struck me. I used to play a lot of retro games back then on consoles. Some games had branding and ads inside them as native game elements. The reason players find casual games irritating is because of intrusive ads. Interestingly, these games can solve that very problem by incorporating brand messages, logos, and other branding elements inside them natively. Most importantly, these games have the ability to collect first-party data at scale without breaching user privacy. With that finding, we figured we could turn the tables.
Today, as a gamification agency, we make ads enjoyable through these casual games, better known as advergames. At the same time, we help businesses collect leads and first-party data without annoying their target audience. These games offer an interactive and engaging way for audiences to connect with brands, evoking positive emotions and memories that traditional ads often fail to achieve.”
For businesses considering advergames in their marketing strategies, what are the key advantages they can anticipate?
“First, advergames can be a great way to generate leads and gather first-party data. As players engage with the game, there’s a good chance they’ll convert into leads, which can lower your Customer Acquisition Cost. Plus, you’ll collect data directly from users, providing you with accurate and relevant insights into your target audience.
Advergames also help increase attention span. The average playtime for advergames is over 17 minutes, whereas only 9% of traditional digital ads are viewed for more than a second. This extended engagement is a big win for keeping your audience’s attention.
Another benefit is positive brand association. When players enjoy your advergame, they have a positive experience that’s directly linked to your brand. This leaves a good impression and fosters better brand recall. In fact, advergames have a 56% ad recall rate, compared to traditional digital ads, half of which aren’t even viewed.
Moreover, advergames can enhance brand loyalty. For example, a study with Vodafone users showed that 58.7% of those who played the game would recommend the brand to others, compared to only 28% of non-players.”
Envisioning the future of advergames, what role do you foresee WhiteLabel Games playing in shaping that landscape?
“Even though the first advergame was released back in 1983, they didn’t gain the deserved hype until recent years. Actually, changes in user data protection and privacy laws are helping them gain popularity. Traditional marketing strategies have been radically changed by Apple’s IDFA modifications, and other tech giants are following suit. For instance, by the first quarter of 2025, Google Chrome will begin to block third-party data. These long overdue adjustments were made with the intention of shielding customers from intrusive tracking systems.
These changes have made advergames more promising and thus their potential to flourish in the coming years. Users of advergames have the choice to either consent to data sharing or not. From a business standpoint, this creates a lot of opportunities.
The native ability of advergames to captivate users and collect data makes them an excellent tool for businesses. As more businesses realize their superiority to traditional ads in creating deeper connections with the target audience and generating direct revenue, the popularity of advergames will surely surge.
It is unlikely that paying third parties for user data will remain the industry standard. Advergames provide more viable solutions by rewarding users with coupons, discounts, or at the very least, entertaining gameplay while spontaneously collecting relevant data.
At WhiteLabel Games, we genuinely believe that every ethical company should applaud the removal of third-party cookies-based targeted advertising as a pro-consumer initiative. We see ourselves as a major force in creating industry standards and pushing the boundaries of creative gamification solutions as the advertising gaming sector expands. Our goal is to help companies of all sizes leverage the potential of gamified marketing to drive greater audience engagement and growth.”
Considering the evolving digital marketing landscape, how do you perceive the role of compliance in the future of advergames and digital marketing?
“We view compliance as an opportunity to build a stronger, trust-based relationship with our audience. With growing data scrutiny and regulations like GDPR and CCPA, secure and transparent data practices are a must.
In the context of advergames, compliance spans a wide spectrum- from respecting users’ privacy and data rights to ensuring that game content is suitable for the target audience. In line with this, we design our advergames to maintain accountability and maximum compliance. We request users’ consent before collecting any data, and it’s strictly for improving the user experience and meeting the client’s marketing goals. Moreover, we actively turn away clients who propose any unethical business practices. Instead, we welcome regulatory frameworks as they serve to increase trust and transparency in our industry. This, in turn, can help boost the acceptance and effectiveness of advergames as a valid marketing strategy.”
Could you elaborate on the core values that guide WhiteLabel’s approach, and how does the collaboration with PixelPai align with these principles?
“Our core values at WhiteLabel Games are trust and transparency, creativity and innovation, quality and excellence, and respect for privacy. We strive to offer engaging and innovative solutions by integrating branding elements into our games, delivering high-quality experiences that achieve marketing objectives, all while maintaining user privacy and compliance.
PixelPai provides services that make regulatory complexity manageable and strategic. This aligns well with our value of respecting privacy, as we assure our clients that we handle all data in a fully compliant manner.”
In what ways do you anticipate PixelPai’s compliance solutions enhancing the experiences of WhiteLabel Game’s clients and their engagement with gaming?
“Let me share a story about how joining forces with PixelPai first came to mind. We were working with a multinational corporation, implementing an advergame solution in an Asian country. This advergame boosted their product conversion by 30 times, and they planned to showcase it at a trade show in the EU. But just two days before the event, their legal team flagged some third-party integrations in the game that could violate EU regulations. We had to deploy a simplified version of the game. If we had teamed up with PixelPai earlier, we could have avoided this issue.
In a number of ways, PixelPai can greatly enhance our clients’ experiences. Initially, their compliance solutions make sure our clients meet all relevant regulations, creating a secure and trustworthy environment. Second, PixelPai simplifies complex regulatory processes, saving our clients time and resources so they can focus more on marketing. Third, working with a trusted platform like PixelPai boosts the confidence of our clients’ customers. Lastly, with PixelPai handling compliance, our clients can concentrate on their main goals, like increasing customer engagement and gaining valuable insights.
Oh, and, PixelPai also empowers creators and bridges digital markets with traditional finance, which aligns perfectly with our goal of leveraging advergames for marketing success.”
What unique qualities do you believe differentiate WhiteLabel Games from other gaming studios within the industry?
“First and foremost, we prioritize game quality. Our objective is to provide an excellent gaming experience while avoiding the drawbacks of subpar advertisement games, which frequently have a negative reputation. We want to give you the finest since we know that’s what you expect.
In addition, we understand the importance of business context and speed. We normally send our products within three days to a week. We first discuss the use-case, making sure the target KPI isn’t missed. For instance, if a company wants an advergame for their trade show booth, we promise and deliver prompt delivery to integrate any feedback.
Our games are designed to be compatible with multiple platforms, including both mobile devices and desktops. We favor simple and enjoyable gameplay. Instead of just pitching a product, our advergames focus on being entertaining and engaging, with a subtle yet organic brand integration.
We also offer robust data collection integrations. Using our default platform or your own data collection APIs (like CRM and email marketing tools), we streamline data management so you don’t have to deal with manual importing or exporting.
When we started WhiteLabel Games, we did extensive competitor research. We found that studios focusing solely on gamification often compromise on game quality or service. Their games tend to be low-quality imitations, not optimized for various platforms, and include awkward brand placements. Conversely, studios that mainly develop games and occasionally dabble in advergames often lack the marketing know-how. From a business standpoint, this results in a frustrating user experience and sluggish development processes, which is a major setback.
Based on these findings and our prior experience as a game studio, we designed our services to provide the best of both worlds. Our unique selling proposition (USP) is that we offer advergames with superior UI and gameplay, tailored to businesses’ specific needs and objectives. We combine creativity with marketing strategy, unlike other studios that primarily concentrate on entertainment, to produce advertisement games that not only amuse you but also help you in reaching your business goals.”
Looking forward, what excites you most about the potential opportunities stemming from the collaboration with PixelPai?
“In terms of the future, I’m most excited about the array of new opportunities it brings. By employing PixelPai’s solutions, we reassure our clients and their customers that we adhere to all applicable regulations- which builds trust and can increase player engagement and game success.
Since PixelPai takes care of the intricate regulatory compliance, we can focus on developing engaging, fun and innovative advergames to help our clients achieve their marketing objectives. Moreover, PixelPai’s global presence could allow us to serve a wider and more diverse range of clientele globally, thereby expanding our market reach.
Additionally, PixelPai’s integration of Distributed Ledger Technology (DLT) and AI to integrate digital markets with traditional finance positions us well for future growth as these technologies advance.
All things considered, we have a great deal of optimism regarding the possibility to improve our offerings, broaden our clientele, and propel the future of advergames via this collaboration. We believe that with PixelPai by our side, we can influence the direction of digital marketing and advertisement games while upholding global compliance.”
